WhatsNew

Welcome to the "New and Improved" Refinance ToolBox website, designed to improve the experience of those wanting to learn more abour the refinance mortgage process.

HotPrograms

HARP and VA Streamline refinance loans continue to be "Hot" programs, providing significant benefit for homeowners with little or no equity in their homes.

RecentMarket

The refinance mortgage rates market has continued on in a sideways pattern over the past several weeks, holding at around .75% off from the all-time lows earlier this year.

Your 652 Credit Score Comparison

Your fico credit score of(652)would qualify you for a refinance national average interest rate of(5.512%)as of January 16, 2009. This would result in a monthly mortgage payment of($ 1,706)for a mortgage with 1.0 points and an 80% Loan-to-Value Ratio for a single family, owner occupied property. Based on a 30 year fixed rate mortgage refi with a $300,000 loan amount.

Use the credit tier to grade your credit. This will give you a better idea of where you stand when you request a current refinance rate quote.

Keep in mind that your “Mid” fico credit score is the one used for refinance mortgage qualification. For instance, if your Transunion credit score is a 732, Equifax score is a 692, and your Experian score is a 672, then your qualifying credit score would be a 692.

See How Your Credit Score Stacks Up

The table below illustrates the powerful impact that credit scores have on an individual’s qualifying interest rate. As one’s credit score falls through the credit tiers, it can result in “tens to hundreds of thousands of dollars” in additional paid interest over the term of a 30 year mortgage!

National average interest rates reporting as of January 16, 2009

Credit Score

APR

Monthly Payment

760-850

4.469%

$1,515

700-759

4.691%

$1,554

680-699

4.868%

$1,586

660-679

5.082%

$1,626

640-659

5.512%

$1,706

620-639

6.058%

$1,810

The figures listed in the table above are based on a 30-year fixed rate mortgage with a $300,000 loan amount. For scores above 620, these APRs assume a mortgage with 1.0 points and 80% Loan-to-Value Ratio. For scores below 620, these APRs assume a mortgage with 0 points and 60 to 80% Loan-to-Value Ratio. Also assumes mortgage is for a single family, owner-occupied property.

Is There Really a Big Difference in Rates Between Lenders
For the Exact Same Qualified Refinance Scenario?

Simply put... YES!! A number of factors go in to the rate that you are ultimately quoted for your refinance. Overhead, marketing,use of (or lack of) technology, bank and investor alignment, direct or broker lender status, business strategy, volume, and mark-up, among others. This is not to mention closing costs, which vary widely among lenders. There is a difference and you can save thousands by choosing the right lender.

The table above reflects the "National Average" interest rates. Keep in mind that there are lenders which can do better, and those who will do worse. Of course you want to work with the better lenders, because after all, you deserve the best!

My Credit is Good to Excellent. What is my
Best Refinance Option?

A good to excellent credit score will qualify you for the greatest number of refinance program options at Low Competitive Refinance Rates.

Simply put, you should get the most competitive refinance program from a broker with access to multiple investors competing against one another for your business. A broker that utilizes software to pull current competing home loan lender programs offered for your qualifying loan scenario, can give you a distinct advantage.

Lenders that utilize technology, streamlined processes, and a low overhead business model can create a winning combination for a low rate and fee refinance loan for you!

My Credit is Not Perfect. Can I Still Refinance?

The Refinance ToolBox can help those with poor credit scores, As Low as a 620 FICO Score.

We understand that everyone's credit is not perfect. In many cases, credit scores are affected by reasons beyond your control. Maybe you have had emergency expenses, sudden medical bills, increased tuition, and on and on. These unforeseen bills may be causing you to miss payments and make your credit score fall.

The Refinance Tool-Box would like to help those with falling credit scores as low as a 620 FICO to get a refinance loan that will help the situation immediately and also to make sense for the future.

Individuals with credit scores below a 620 mid fico will most likely not qualify for a conventional refinance and may also have difficulty qualifying for an FHA loan. Technically, FHA loans are not really score driven, but many of the lenders that underwrite and fund FHA loans have raised the minimum credit score requirement to a 620 mid fico.

Those with mid credit scores below 620 may benefit most in the long run by repairing their own credit, or by using a credit restoration company to help raise their credit score above 620.

Those with poor credit scores, as low as a 620 FICO score, can get low mortgage rates with a FHA refinance. In fact, those that qualify may receive lower mortgage rates than a comparable excellent credit qualified prime conventional refinance mortgage!